Diamond Industry Embracing Blockchain Technology

08:30 AM, February 5, 2018

Press Release

CEDEX - the first ever certified blockchain based diamond exchange

The team at CEDEX aims to disrupt the diamond industry by utilizing blockchain technology in order to tokenize diamonds and create a transparent marketplace that anyone can use to liquidate or invest in diamonds. Due to the structure of the current diamond exchanges, there is no current way to invest in diamonds without being a member dealer. This makes it so non-professionals have no channel to sell their diamonds for a fair market price. Other issues such as lack of transparency, liquidity, and standardization – further hinders diamonds from becoming an alternative investment class for general traders. CEDEX is about to change that.

CEDEX, which is short for CErtified Blockchain Based Diamond EXchange utilizes innovative technology to establish diamonds as a new financial asset class and solve the current issues in the diamond industry. The logic behind tokenizing and investing in diamonds is sound – diamonds retain value extremely well and don’t suffer the type of volatility that affects other investment markets. In addition, the diamond market is valued at a staggering 350 billion dollars and as diamonds become more scare; prices are likely to increase over the coming years.

In order to get a better understanding of how it works, the CEDEX project is easily broken into four components:

The DEX – A proprietary algorithm that evaluates and rates the Diamond-Smart Contract price allowing “non-experts” to confidently trade in diamonds.

The CEDEX Coin – A new cryptocurrency allowing both traders and cryptocurrency holders to buy diamonds on the CEDEX.com exchange.

Not only is CEDEX creating a revolutionary platform but they are also bridging the gap between diamond suppliers and trader demands. To solidify supply, CEDEX has already signed agreements with diamond dealers which creates access to over 1,600 diamond suppliers’ inventory on the exchange. In conjunction with private diamond holders - the flow of diamonds on the exchange is expected to be unprecedented. To handle the demand aspect, the CEDEX exchange will be a valuable tool to both commodity traders and cryptocurrency holders. The commodity traders will be excited to discover a new asset class and cryptocurrency holders will have the opportunity to purchase a less volatile asset to lock in crypto profits.

The process of creating a Diamond-Smart Contract on CEDEX is a safe and simple process that is executed by smart contract(s) on the Ethereum blockchain. A required GIA certificate must be uploaded for each diamond to be listed. There are three different tokenization options (single diamond, shared investment or diamond basket). In terms of distribution, the user has the option to either list on CEDEX or sell peer-to-peer. Even though CEDEX is not intended for the use of purchasing physical diamonds; a buyer will be able to request delivery. The Diamond-Smart Contract ensures the secure delivery and upon successful delivery - the Diamond-Smart Contract will be marked as delisted.

Another user friendly solution that CEDEX implemented, is a proprietary algorithm (the DEX) that makes it easy for the user to accurately determine a diamond’s value – all without any expertise. The DEX works by combining gemological data, diamond financial indices data, and global inventory data to determine which listed diamond is the best value for the price. This sophisticated machine-learning algorithm makes it possible for users to search through diamond ranks and their prices by their theoretical market value.

CEDEX currently has an upcoming token pre-sale happening on March 16th, 2018 and a public sale happening soon after. Any activities performed on CEDEX will be performed solely using their issued CEDEX Coin. Demand for CEDEX Coins will vary with the number of active traders using the platform, and any transactions using CEDEX Coin will save fiat-currency transaction fees. There will be 100,000,000 CEDEX Coins in total issued. However, only 50,000,000 will be available for purchase and 25,000,000 of these tokens will be sold in the pre-sale. The hard-cap for the token sale will be 40 million dollars and the value of 1 CEDEX Coin will not exceed $0.80.

CEDEX is the first certified blockchain based diamond exchange and by incorporating the innovative technology of The DEX platform – CEDEX has the potential to completely change how the diamond industry is operated. If you would like to know more or want to read their full whitepaper, additional information on the project can be found on www.cedex.com.

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